Lack of coordination of fiscal and monetary policies, disregard for the high degree of inflation persistency, unstable relations and bilateral causality between money supply and inflation, all imply an inappropriateness of money-based stabilizations for the transition economy of postcommunist Russia conducted under the auspices of the IMF. As a representative of the West, the IMF pretended to aid Russians through stabilisation. The IMF promised loans while the Russian government promised reforms. This turned out to be a pseudo lending for pseudo reforms with disastrous consequences for the Russian economy as explored and scrutinized in this volume.
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